What is MSRP?

Finance Agreement

If you’re in the market for a new vehicle and you’ve been looking around at your options, you’ve probably seen and heard the term MSRP. But what is the MSRP meaning? MSRP stands for Manufacturer Suggested Retail Price and is a number the manufacturer recommends a West Palm Beach dealership sells a vehicle.

It can also be considered the list price, which is something that the manufacturer determines based on market information on the vehicle’s popularity, the materials that go into building it, and more. Do you want to learn more? Take a look below or contact our finance center team, and we’ll be happy to set you on the right path to new car ownership in Delray! 

What is MSRP?

Want to know more about MSRP meaning and details? The MSRP is the recommended price at which dealers should sell a vehicle. Let’s dive into what an MSRP is so you can feel confident before car shopping in Palm Beach Gardens!

  • A particular model will share the same MSRP across all dealerships, as the price is set by the manufacturer.
  • While the MSRP is the same for each vehicle of the same model, it won’t be the same for every vehicle the manufacturer sells. For instance, SUVs will have a different MSRP than a sedan or a truck. 
  • Car shoppers can find the MSRP on the manufacturer’s website or the dealer’s website, and they can use it when negotiating the price of their new vehicle. 

How is the MSRP Set?

  • The MSRP sets a vehicle’s base price at its entry-level configuration without additional features or accessories. 
  • Additional features and higher trim levels will raise the cost of the vehicle accordingly. 
  • While the MSRP is recommended by the manufacturer, it’s not necessarily the price the dealership will choose to sell the vehicle at. 
  • Depending on the invoice price for the vehicle – the price the dealership paid for the vehicle – the dealer may raise or lower the price of the car for Delray shoppers.
  • Demand also plays a role in how much a vehicle costs. A popular model will most likely be sold closer to the MSRP, while a less popular model may be set at a discount. 

MSRP vs. Invoice Price

You may hear the term “invoice price” while car shopping, but how do you differentiate between MSRP vs. invoice price?

  • Invoice price (or dealer price) refers to the amount a dealer pays the manufacturer 
  • MSRP is the “sticker price,” i.e., the amount you’ll be paying the dealer

Keep in mind that the MSRP is “suggested,” so there’s typically room to negotiate. Knowing the MSRP vs. invoice price will help you determine what a fair negotiating price will be.

Learn More About MSRP Meaning with Al Packer Ford West Palm Beach! 

We know buying a new car can be confusing sometimes, but our West Palm Beach team is here to help you. So take the first step by taking a look at our new vehicle inventory and then you can start the car-buying process at home by filling out our apply for financing form!


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